A police force has been fined £166,666 after one of its officers was shot dead in a warehouse during a training exercise.

Greater Manchester Police admitted a health and safety breach after the fatal shooting of father-of-two PC Ian Terry, 32, was killed during a firearms training exercise in June 2008.

PC terry was not wearing body armour and was hit from a distance of about 12ins by a blank round of specialist ammunition which is not designed to kill but can be deadly at close range.

In January, Chief Constable Sir Peter Fahy pleaded guilty on behalf of GMP to a breach of Section 2 of the Health and Safety at Work Act (HSWA) under which an employer has a duty to protect its employees at work.

Today, the officer who was in charge of the training session - known only as Francis - was found guilty of a breach of Section 7 of the HSWA for a lack of care towards another employee.

Another anonymised officer - Eric - who helped the lead officer in organising the training course was cleared by a jury at Manchester Crown Court of the same allegation.

PC Terry, from Burnley, was shot as the unit practised in a disused factory in Newton Heath.

He had brandished an unloaded handgun during the exercise while playing the role of a criminal fleeing in a car when he was hit by the specialist ammunition known as round irritant personnel.

The jury ruled that there was a catalogue of failures not only by the officer who shot PC Terry but also in the planning, training and safety measures in place.

Tragedy: PC Terry was shot in a training exercise at a disused factory in the Newton Heath area of Manchester. A forensics officer is pictured examining the scene after the shooting

An inquest at Manchester Coroner’s Court in March 2010 had already found that PC Terry was unlawfully killed.

In a statement, Chief Constable Sir Peter Fahey said: 'On behalf of Greater Manchester Police, and also personally, I want to apologise for the failings which led to the death of PC Ian Terry and express great sorrow for the pain and loss suffered by his family.

'We accept that there were failings in the way in which the training exercise was carried out and today we accept the sentence that has been passed.

Admission: GMP Chief Constable Sir Peter Fahy today apologised to PC Ian Terry's family over his death. He had admitted health and safety breaches on behalf of the force

'Ian Terry was a highly professional and dedicated officer and also a member of a very close and loving family. I know he is missed as much today as the day he died.

'I want to express our admiration for the dignity and love shown by his family over the many years it has taken for the case to get to this point.

He added: 'It has been just over five years since Ian Terry tragically died; five years that Ian’s family, friends and colleagues have had to wait for today’s outcome.

'Since Ian’s death we have introduced a number of rigorous measures to ensure that the risk to our officers on such training exercises is minimised and that their safety is our number one priority.'

In a statement, the Terry family, including widow Joanne, said: 'Ian was an exceptional man - a brilliant father, husband, son and brother who we will always be proud of.

'He was the heart of the family and always had a smile on his face. His enthusiasm for life was infectious.

'He was also a dedicated police officer who loved his job, and his career was progressing well within the firearms division of GMP

'The last five years have been horrendous for us. We are a patient and reasonable family and all we have wanted from day one is for those involved in this tragedy to accept their portion of responsibility for what happened to Ian in June 2008.

'In our opinion there have been numerous failings uncovered, not only in respect of the fatal training exercise but in the initial investigation.

'We believe that these failings have only been allowed to occur because Ian was a police officer killed in a police training exercise and as such the incident was not treated with the suspicion it deserved.

Tragic: PC Terry, from Burnley, was shot as the unit practised in a disused factory in Newton Heath

'We were told initially that Ian had been killed in a tragic accident, which clearly was not the case.'

The family also expressed disbelief that the officer who fired the fatal shot has not and will not face charges from the CPS.

But they added: 'However, we finally have a small measure of satisfaction after years of pain and uncertainty that at least one of the officers we believe are directly responsible for Ian’s death have been proven to be so beyond all doubt and we hope that they now have the courage to accept that responsibility.'

HSE principal inspector Mike Calcutt said: 'Ian Terry was a well liked and respected police officer, and a loving family man.

'He was shot and killed on a training exercise in Manchester by one of his colleagues. His death was entirely preventable.

'Today, PC Francis has been found guilty of failing to protect his colleague by introducing dangerous and reckless elements into a training exercise. Greater Manchester Police accepted its failings and we welcomed their guilty plea earlier this year.

'Today is an important day for Ian’s family, who have suffered an ordeal nobody should have to endure and who have waited patiently in their search for justice.'

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Police force fined £166,666 over fatal shooting of an officer who was gunned down in a warehouse during a training exercise